5 Red Flags in Choosing a Business Broker


Posted March 18, 2020 by Dianeantone72

Empire Business Brokers, LLC works with business owners, business buyers and business sellers. With business buyers, we help them to select the best business to fit their skills, their budget and their lifestyle.
 
When choosing a broker to sell your business, be conscious of these tips...

The broker needs a substantial or total fee paid upfront.

Many brokers have started taking upfront fees, but normally the entire fee is a combination of an upfront fee and commission paid upon sale of the business enterprise. An unreliable broker matches with you, conducts some fast numbers, informs you that it is possible to get your price or more for your company, and then asks for a check to begin. Oftentimes, business owners are so relieved that they've discovered a broker and elated that they will write a check on the spot, without checking any references.

During your first meeting, the agent says he or she can get your asking price or higher.

Be wary of too much confidence. The key to selling is that the cost be reasonable. Based on Tom West of Business Brokerage Press at Concord, Mass., most owners over value their companies. An unreliable agent might suggest after a brief meeting with you that he or she is able to get you your asking price or greater for your business.

The broker doesn't have a Web website.

Most likely, if the broker doesn't have a website, he or she is behind the times. The Internet is a powerful marketing tool for business brokers, according to Cooper. Is the website well-written? That is another way to gauge a broker's proficiency, he adds.

The broker does not seem well grounded in business valuation.

Your broker should be able to explain business valuation to you and if they can't, then how can they explain to a buyer exactly what your company is worth? Make sure your agent is convinced in this region.

The broker isn't licensed to sell or lease real estate in your state.

Ninety-two percent of business brokers have a real estate license, based on an yearly survey of business brokers West ran. Even if your business does not consist of real estate, ensure that your agent carries the permit. Also be aware that if a broker holds a real estate license doesn't mean that he or she ought to be selling residential or commercial property too. A good broker will maintain the licenses but be concentrated on selling businesses.
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Categories Business
Tags buy a business in spartanburg sc , empire business brokers , sell a business in spartanburg sc
Last Updated March 18, 2020